NY STATE ASSEMBLY INTRODUCES BILL TO REWRITE BUSINESS INTERRUPTION INSURANCE COVERAGE
March 27, 2020, New York State Assembly introduced a bill, A10226, requiring every policy of business interruption insurance to include among the covered perils under that policy, coverage for business interruption during a period of a declared state emergency due to the 2019 (COVID-19) pandemic.
The coverage required indemnifies the insured, subject to the limits under the policy, for any loss of business or business interruption and applies to policies issued to insureds with less than 100 eligible employees (works 25+ hours per week) in force on the effective date of this act.
This would be funded by a “special purpose apportionment” the New York Superintendent of Insurance would be authorized to collect from all insurers doing business in the state, under the proposed legislation. The bill is limited to insureds in New York with fewer than 100 full-time employees with a working week of week of 25 or more hour.
There are similar bills proposed in the Senate: S 8178, which would apply only to those companies with 100 or fewer employees, and S 8211, which would apply to businesses with up to 250 employees.
We will continue to watch and report on the evolution of this bills.
NY A10226; NY 10327; S8178; S8211A